NICIL transfers $250M to bailout GuySuCo

The National Industrial and Commercial Investments Limited (NICIL) on Wednesday transferred $250M to the Guyana Sugar Corporation (GuySuCo) just as the company was considering laying off additional staff.

NICIL in a statement said the transfer represents a partial response to the Corporation’s request last month for a ‘bailout.’

This brings the total disbursements to GuySuCo from July 2018 to date to $9,970,759,568 in addition to the close to $40 billion it has received from the Government, NICIL said.

NICIL also released a signed letter as evidence of the transfer.  The agency will soon transfer an additional $750M to GuySuCo, the statement noted.

The entity also accused GuySuCo of resorting to “petty disclosures and half-truths in the press,” rather than professional engagements.

NICIL, which has been involved in a public spat with the State entity for several months, urged GuySuCo to report its expenditure schedule to NICIL and the bondholders in accordance with the terms of the bond.

NICIL had secured a $30B bond to retrofit and revitalise the three remaining sugar estates in 2018.

GuySuCo in early June requested a bailout as it is faced with mounting debt, low production and the COVID-19 pandemic. At the time, GuySuCo’s chairman John Dow said there is also a backlog of G$2.1 billion owing to creditors.

But the Ministry of Finance said the treasury is not in a position to provide the money needed and promised to look at other means of funding the GuySuCo including monies from the sale of former estate lands.

Some 10,000 workers are employed by the country’s three sugar estates.